of thminds ofthe young people. >> thank you for being with us, and good night from new york i meant to say go ducks, not trojans. neil: isn't that rich? it is not just the rich. i have had a good 24 hours to examine the president's budget, let me confirm what i lot of you know, your taxes are going up too. welcome i am neil cavuto, remember that line in the sand, yoyou know the one separated $250,00$250,000 crowd and every, the president just wiped it out. now virtually the rest of the country is paying through the nose as well. it was just a matter of time, and payroll tax of a teaser. but up to now, the presidential ways stuck to the notion real rate hikes were focused on just individuals making more than 200

grand and couples over 250,000, now try more than 40,000 bucks, since that is what the average smoker makes and the tax on his tax of cigarettes just doubled from a dollar 1 to a buck 95 for tax. and higher prices at gas pump, and utility bills, that 7's utility bills and everyone's gas pump. and the itemized deduced deducts sneakier, no matter what tax bracket you are in you cannot benefit from itemized deduction, last time i checked there were 3 brackets higher. so, all of those families vast majority make below 200,000 will not be able to fully deduct

charitable contributions or mort gam interesmortgage interest, an state taxes paid, see how that goes over in high state tax states. i have not gotten into a date death tax that the president wants to hike and new taxes on banks and proagbrokerage firms and insurae companies, to assume they do not pass along those higher taxes in the form of higher fees and bigger commissions is at best naive. it was ludicrous to think that obama administration could pay for government spending on just the backs of the rope the rich y realized they were running out of money, and they have moved down the food chain, down to yanking your chain. welcome to the elite my friends,

before long we'll be pay through the nose, and dirk forecast this before before any of my guests, we have moved down, well, well below that $250,000 level, i think they realize it takes more than just hitting up the rich, even that does on not pay for this, what now? >> well, first thing you realize, if you listen to the president speech the other day, as i did, this is a classic example as we saw in obamacare of deceptive government practice, hide the taxes in the bill, don't talk about them, wrap is up inflowing rhetoric, the politics agreed is wrapped in a language of love, this president, correctly bets that the are on the goldman sachs press will buy -- orthodox press will buy right into it, and he will get away with it, it is not surprising to me.

one thing that i think this president wants more than universal government control of income distribution is universal government control. big government. that is his devotion. that is the dream from his father. and he will make anyone who is capable of paying chip in in order to get that expansion in government. he talks about how i have already met the republicans and ut. where do you find the cut in a 6% expansion in size of the budget in next year? neil: i'm flabbergasted in this respect, you know, we have gotten into this before, you know basic math will tell you that, just hitting up the wealthy, would not be able to pay for all this and all of the latest taxes are still not enough to compensate. which is why the president does not attempt to balance this out in 10 years. or 500 years. the point is, that this is the

new reality, what disturbs me though, is that now we find all these creative ways to raise money. not a single creative way to cut spending. and it gets more creative every day, that is disturbs me. >> it amazes me, i came to washington in 1985, one of the first conversations i had in washington was with pat monahan telling me how much we could help in process of trying to straight ep oustraighten out soy problem by correcting the cost of living adjustment that is not a new idea. >> look, i tip my hat to the president in at least trying to address that. it is not herculean.

>> there was a responsibility lapse. neil: if that is the mostly offers is that slight adjustment, then what? >> thatitty bitty thing, and he gets attacked from both republicans and democrats. now we expect the democrats to attack, but shame on the republicans. it is not a big adjustment, it is a intellectually correct adjustment. monahan has known it for years, it is not that big a deal. what you saw with the republicans is bless their heart, they had to jump on the demagoguery bandwagon and forget about policy, the democrats gave us a chance to ge dem gol demagh

some success, they should jump on the wagon. so shame on them. neil: you touched on right away, they bought hook, line and sinker. the idea how they are budget numbers that show far more spending cuts than tax hikes, we know that is not the case, and so-called $600 billion in new taxes they are quoting is more like $1.1 trillion that is adding up various fees and tax hikes and closing loopholes, that is the number i came up with. that is just my due diligence, no one in the media bothered. >> it is is amazing to me. the idea of due diligence in the conventional medea today is to read the white house press release, they feel, i have done my research now, let's put the story n as they gave it to us. you know, let me say, i said it last time, the single most failed institution of our democracy today, is the press.

it has a responsibility to be the rigorous objective referee in these contesting of ideas, the press has sold out, hook, line and sinker to barack obama. they are just head over hills for him. neil: it is obvious, certainly in the coverage of this, dick army great seeing you, former house majority leader, when leaders were doing something, good to see you again. in don't even think was not paying up, because the irs is watching, i mean the irs is watching everything. everything. then you can't stop the rain. but you know what, you can tax it. the new rain tax that is proof our country has its head in the clouds. ♪ i wonder whol ♪

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all right, i don't mean to scare you, well i do to help ratings, i'm kidding. i want you to be scared. you are about to get caught in your own worldwide web, every post you liked every picture you took, every e-mail you ever, ever wrote. fair game for every irs agent out there. and it is old eagle for taxman to check in the name of collecting cash from you. what do you make of this? >> i think this is an outdated law, 1986, cell phones were this big. people were not e-mailing. neil: you were not born. >> all i know is a watched wall street and gordon gecko had that phone. neil: even when i watch the movie it looks stupid. it is outdated like the phone. >> i think that will be fixed because there are a lot of

members of congress that are scurrying quickly in dealing with folks like google and others saying this outdated. >> i have been subjected to irs treatment. i am no one to defend them, however, painful as it may be, what they are doing is legal, it is easy to fix, the problem with original law passed in 1986, there was no e-mail, if you have a e-mail on your home computer, they have to get a warrant, but they never contemplated are clouds and servers, anybody on a cloud or server after 180 days, it fair game, have congress make an easy amendment to the law. neil: but sabrina. argument i hear from irs. starts with either a suspicious return or they flag something you sent to them, then it is

fair game, it would be akin to confirming with your employer you are still there or that write-offs you are announcing or contribution you report are accurate, then going after your e-mails or whatever else is fair and legal game. what do you make of that? >> i don't know if it can be legal, we do have 4th amendment that protects us again reasonable expectations of privacy, if you pay for an e-mail account and you have a password, i cannot imagine that is a fair game. neil: what if you say, you just took a trip to the mediterranean, and you were in presidential cabin, like you you unger does all of the time, and you report to irs you make $20,000 a year, and they will say wait a minute. >> it has been tested on fourth

amendment challenge it did not hold up. neil: what? >> the irs was free to -- >> to do whatever it is. >> it is outrageous, 4th amendment rights are government should not be able to infringe on that. >> they do and they have, we have private companies that do. >> think about it i go back to it outdated, things are different now with technology it needs to change. neil: good old days are gone. >> it is a crazy world. >> i don't send snail mail or real mail, all i do is electronic, if someone gets in your mailbox, it is a federal offense, why not when it is electronic. neil: what is a difference. >> this is nothing new, government -- it is new. >> i agree with i have talked with a lot of lawyers who say, it is not pleasant.

>> call your congressman. >> we're living in a brave new world of technology, and big data, you can take money out of an an atm, driver through a lig, our information our privacy is becoming something that can be public. we need to rethink how we navigate this relationship. neil: don't you think that anything you e-mail to anyone or anything do you on worldwide web or you click on a keyboard it fair game. >> it is. >> it's not fair game. >> we should not run away from the technology. neil: i am saying, you know scott mcnealy's old line from sun microsystem, if you are worried about your privately, get over it because those days are gone. >> what is difference of a 180 day e-mail from e-mail you sent yesterday. >> you are right on the logic, i don't like it. i don't support it.

neil: yes, you do, i think you do, liberals -- are you into eavesdropping. >> i would rather visit my -- producttologist then go through an visit with the irs. irs. neil: is it starts out, they are not initially hunting, they say >> are you sure. neil: they look at something in your return that does not quite mesh, then everything else is an open game. >> what -- is your journal in your night stand open game. >>, it is. >> big difference is expectation of privacy, if that journal is in your night stand, you have an expectation of privacy. neil: it is on your computer? >> we know that you have an expectation of privacy, they

must have a warrant to get your computer, it has been ruled that if you leave it out there in cyberspace, have you an option to erase it, if you don't -- neil: on a server. >> it can be erased from the server. neil: you have to tell he how to do that because i am in deep doo-dooright now. now. >> storm over tax on rain, you will not be singing out loud about. >> singing in the rain ♪ just singing in the rain ♪ [ buzzer ]

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neil: i have said this so many times, if governments were half as creative culting spending as

they are in ways of taxes to spend, when it comes to getting dough. they are von brauns without the bucks. steven crowder. this one, i don't know if it will leave you laughing and crying or laughing or crying. but topic one. taxing rainwater. tax those homes that benefit from mother nature. that is long and short of it. but, i think idea is all wet. an original way to get money, but most half-assthing i have heard. >> to your opening monologue, if i could give an standing ovation, it was fantastic. this topic we'll talk about the rain tax. which is a great example to point to as far as a government that far exceeded its original

prompters, but, problem is for every rainwater tax you hear about, the other 40,000s of taxes that nobody knows about, and a lot of people don't like hearing it because it is crunching numbers, it matters, but the rainwater, i can not think of anything more indicative of punishing success because they have a larger house. they have the odd asty it make -- odded on asty to make a higher income. the government loves to tax things then blame companies, big oil is a huge scapegoat, in quebec, they hated big oil so much. they put up a pie chart saying here is profit we make, this little slipper here versus what goes to the government. a good example circumstanc chame

is tax time, you join a gym you pay a processing fee, have you paid a processing fee. neil: i hear they have them, go ahead. >> there is one right there in the fox news building. neil: right. >> the processing fee takes the signed contract from counter and puts it in a bin under the counter, think of that. neil: a very good analogy you are right about that. >> only it is billions of dollars bankrupting the country. neil: to that point of hiding stuff under the counter, hell has frozen over or taco bell has, the last of fast-food police holdout given in, they are healthier, promising a lean and healthy menu, i trust to get those papaya chugging protesters off its back. >> i don't know why you. >> with papaya.

neil: it sounded good, pa paya papaya pushing ove or whatever. >> it does sound good. i don't know what the motive is. but it does seem like -- no one goes to taco bell expecting something healthy, you can buy an extreme chicken grilled stuff or double beef and cheese burrito it costs the same as a gumball in a 25-cent machine, how they do that i don't know, i assume it is unhealthy, but if they are doing this to keep the government off their back, that is a real problem. neil: i thought in early days, mcdonald's switched to salads, but they could say, look we are giving people a choice here. so they come in, and say, we covered our you know what so that you know they can be satisfied. i think taco bell just glommed on to that.

>> maybe they did, but a lot of choices that have to be offered are because of government bureaucracy. right now, it is cool to hate transfat. why because the neo-- said you cannot use already it has saturated fat. it causes high cholesterol, it is now following, they have used vegetable oil, how dooyou get oil from a soybean? that is not natural, and it is bad for you, the same lobbyist groups come out and protest transfats. i love that taco bell has a choice to give you crap that is not healthy, which i love or something healthy. americans pay it on a bill like you talked about they have no idea. neil: there is great wisdom to you laughing man, thank you very much dr. crowder see you then.

>> thank you, neil. neil: hey, justin bieber, tired of fighting with the paparazzi, get ready for some pretty ticked off parents, because you my teenage heart throb, might think a debit card for kids is a great idea, but their moms and dads are pretty teed up, yet ready jb to put your dukes up. all stations come over to mission a for a final go. this is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, t, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers.

neil: the fee in bieber fever, justin bieber wants your kids paying with plastic. prepaid debit card, but this card is paid by you with hefty fees, john layfield said it does not matter what pretty faces they put on cards like these, they always come back to bite you. he is in ber media. bermuda. he is back from that wrestlemania. this is weird. you know, i know he is just latest celebrity endorser, you know putting your name on something. but this is a debit card, meant for kids. i think it starts them very young on the road to you know spending bliss.

>> yeah, i think it does, i'm not sure why justin bieber wants to do this, he makes $55 million a year, this card will make under $4 million plus aannuitans it will be huge, they pay $3 a month if they don't use the card, and $ 1.50 for every transaction. there are a ton of fees, but your preface this is a te terrie things for kids to start using this plastic. neil: what is it for those who kid the card? it is a debit card, you know smart guys like you say that is a more constructive way to spend your money because you know you spend existing money you have. not off of a credit line. so maybe there is some good in that? >> i think there is some good

in, that look, it is better than using a credit card, that card act. that is a very good thing. the kids get out of it the opportunity to pull out plastic, and use it to impress their friends with justin bieber, the spin smart, you get a notification pen sent to parentf kids are someplace they are not supposed to use it, the parents can cut it off immediately. neil: all right. that is impressing. this wrestl wrestle mania, one r producers was there, 84,000, you were announcer, i could not believe the numbers, i want to get one thing out of watt -- way, is it fake? >> look, i was world champion for a long time, and it was 100% real, i heard since then it has

become fake. neil, i think we say scripted. we have a bad injury rate, i broke my back in professional wrestling, there is a huge amount, we don't have benefits of cameras like hollywood there are a lot of blows that land, and people get hurt, fake is not the word, but scripted. neil: like the show. did you expect it would be that big, that many people drawn to it? >> what is shocking is how quick is told out, almost immediately at metlife over 80,000 people, that was shocking, we were in some stadiums a few years ago when i was doing commentary for wwe then it look a long time to sell out stadiums, in new york i don't know because it has long been a hub of wwe but it soldout really fast. neil: man oh, man. amazing stuff, and touche to

you, john layfield good sees you again. >> great seeing you. neil: he does not need a justin bieber card, this time, when we come back, fewer airlines, fewer plains and fewer choices, adds up to fewer dollars in your wallet. i already warned but that, didn't i? maybe you just forgot. >> you will have fewer carriers, and fewer planes, and just as many it not more passengers, are you getting this, it is not a pretty picture, and i have not even got into those stupid fee, let's say, you could be royally hatched on that

neil: air fore soaring, pc 's dying, and mccannot get my order right. ticket prices soaring after big airline mergers, i warned you about that. but u.s. airway ceo doug parker denied it would hurt consumers.

>> concerns this is going to hurt consumers. >> this merger is great for consumers, we have two complimentary networks that makes two airlines stronger, that is good for our investors, and employees and customers we'll have a stronger airline. neil: like me saying, on pluto i'd be thin. i'm on earth! al, what do you think? >> he was telling the truth, it is a stronger airline, and they are going to charge you for it, you called this, i thought they were going to have pay toilets before they raise airfares. but, mergers almost always result in higher prices, and all of these mergers are caused by bankruptcy, they were not changing enough for ticket prices. now they will charge a lot more

92 how bad? >> some areas like chicago, now they you combine it 80% of flight to phoenix, the prices witness up 50%, but if we trust in free enterprise, which i do, we'll get other competitors in there. al was joking about fees, airline business model has been broken for the last 50 years, we have to have a business model that works. neil: do they get with that with the fees. >> you go to a restaurant, you order off the menu, you pay. i think we have a model that works, let's get them strong enough to buy new planes, that the generate jobs. neil: all right. mickey dees. mcdonald's with a new ordering sim, customers make their order,

take a number, pick up their meal on the other end of the counter, what could go wrong? mcdonald's hitting a record high on this and other news, maybe a golden idea. >> dude, it works. there is a place called 5 guys, they have been doing this for years. neil: you know what you are getting. >> and mcdonald's, you know if you order, you are hanging around, where is my order, is that the right order, on this one they check the number, you don't have to wait around like a duffus. neil: you are still waiting around. what about drive throughs? >> why does it take mcdonald's so many years to figure it out, are they not the original hamburger chain, go i to mcdonald's every morning and get a diet coke or an ice tea for a dollar, i have gotten used to asking the guy in front of

me, hey, are you in line, it an ice breaker. neil: i don't know, if the idea being here then they avoid mistakes? then everyone is happy. >> this is chaos. you go in line, and you make your order, they say okay here is your receipt, sir, wait for that. you have these people milling about. it works when it is not crowded. but, when it is crowded mcdonald's is a hectic place. >> they figured out because social media, they get tweets and facebook posts saying can you believe they screwed me over again at mcdonald's. neil: what do you know about this, you are a dell frisco's guy. final topic, is the pc doa after analyst say that window 8 is to blame for what aimed ted -- amod to a stunning drop in pc sales down 14%.

>> it is getting more, pc 's peaked 2 years ago. but it is the post pc era. neil: what is the new era. >> you will be on different screens, we have tablets now, and phablets and laptops, but big issue is window 8 is a dog, a pain in the butt to use. neil: i love windows 8. >> well, you don't represent the world. neil: you are just feeling your final guest spot here. i'm kidding. but what is going on. people come to a conclusion, i see more young people in particular with the ipad device that is their default computer. says the man with an ipad. >> i have an ipad and a laptop, i think that tobin is

right, windows 8 was a dog. there is no reason to upgrade the pcs out today, you have tools coming out cleaning ipad, i don't think that the pc is dead any more than i think that news paper is dead. but it is -- >> the newspaper. neil: to be fair, newspapers are coming back on-line. >> the issue is about desktops. >> they are a shrinking industry. vow to recognize that. >> growth in the desktop has been in europe has been in asia mostly in asia they are getting to saturation level, to al's point, first off, this is a big investment if you are chinese to spend $500 on a pc, you are not doing this everier two years like here. neil: we have not been doing that. >> not for a lot of years, we've reached saturation. neil: thank you, al great, see you again. and continued success in the print world. >> meanwhile, give sperm, get

sued. oh, baby! ? ? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally.

neil: hey, did you hear the one about the guy who donated his sperm to two lesbians, then gets sued for child support? it's true, the poor guy's lawyer is asking to have the case dismissed. good luck. what if i told you, this is easier said than done, he has given birth to a lot more than a baby. more on whether he has to skirm squirm after the sperm, rebecca? >> it is unfortunate, an odd situation, and kansas is pushing something that makes no sense. they are saying, he donated sperm but not through a doctor,

so you know what, you have to pay child support. the lesbians -- >> he knew the women? >> he responded to an ad on craigslist, they did not have a lot of money, can we have some sperm, yes, and they paid him for it. >> they knew him? >> yes. they met. the issue prior to the insemination that sperm was not checked and properly administers by a doctor, so now there is a baby, 3 years old, what is the problem? there was an agreement with this man in contract, the couple has split. but they agree, he had no involvement in the case other than the -- >> who is suing? >> can kansas, the state of kans got notice of this because the

child needed health insurance, they say we don't care if me was involved we're going after him for child support, this does not make sense, the two people who had the baby don't want him. neil: does the state have grounds to go after him for the money. >> they do, contract is invalid, the lesbian couple breached the state law that required them to be in a doctor's office, the state is going after them, the couple saying that guy should not be involved. and that additionally the mom, the two moms, whatever you want to call them, have split up, the mother who has custody and birthed the child is disabled and on disability through the state. the other mom is not voluntarily paying child support, why is she not paying it. neil: could the state pursue the same financial obligation out of

someone that gave blindly at a sperm bank, and they traced it back to a particular guy. you know what i mean? what is the difference? >> you say -- if there is at anonymous factor. >> this is uncomfortable. >> it is shouting sperm makes me uncomfortable. but if a sperm donor, under the guise of a medical proceedsure, there is something creepy about fact you are trollingcraigslist, and you ejaculate into a -- >> hey, hey, you are scaring me. >> the man did a service to the w.h.otwo women who wanted a bab.

they love their baby. neil: how will that baby feel about him now. >> that is a separate issue. neil: your daddy doesn't want to be your daddy. >> he said, i gave up my rights when i gave the sperm to them to do them a favor to have a couple, a family, whether or not that is right and wrong is separate from the legal issue here. neil: kelly? >> i think that child will be upset, i think bower should step up, the mother out of the relationship, does not have primary custody, and as for the guy, if court says he is on the hook for money, i bet he changes mind about how much activity he wants in the kid's life. we will have to see how it plays out. neil: i guess we will, but just in case, ladies, my little boys are watching right now, this is

what happens when the stork gets in trouble with the other stork, and sues the stork agency. we'll talk when i get home. when we come back, last night, he had dinner with republicans, today a powwow with banks, what is he up to, let's say getting billions of dollars. alec, for this mission i upgraded your smart phone. ♪ right. but the most important feature of all is... the capital one purchase eraser.

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neil: we're still saying dirty words on the break. didn't we feel like kids in school, like he said sperm, she said sperm. anyway. >> this is a family show. neil: it is? >> no it's not. neil: to be a fly on that wall in the white house, you hear about this? president meeting with a lot of big bank ceos today, kind of on the same mission that president had gathering with republicans for din-din last night, higher taxes may be higher than they are now.

unless warren buffet insists a minimum of 30% tax on millionaires will do us a world of good, do you think they bought it. even rick unger thinks it is a hard sell. rick? >> let's get one thing clear, it is 30% over a million dollars, not of a million. >> idea that you know new top rate is 39.6 for a lot of people when all can factored. with beautiful rule, that -- busbuffett rule says -- >> how do you think it went down, nobody likes paying more taxes.

but -- >> nobody likes higher taxes. >> you want everyone to though. >> no. neil: you have clients. >> i am bringing something else in this that happened yesterday, it was show shocking about how things are in it country, part of obama's budget that would put a cap on how much you can contribute to your retirement account tax deferred. ceos yesterday, saying, you know what, if that is how it is going to be, i'm ending the company pension plan. i am saying, wait, i work for companies with a company pen00 pension plan they sold it to me by saying that is part of my compensation. neil: you are judging behavior and comments of a few for all. >> there were a lot of that yesterday, these are people sitting in the meeting yesterday

with the president. >> even if you don't buy into that class warfare that clearly warren buffet and the president buy into the buffett tax would not have impact in terms of raising revenue that president is selling. i think that is the bottom line, the majority of million areas we're talking about, the large majority are already paying 30%. neil: we're told from our own charlie gasparino who was all in that room, he has good sources, they were nice with the president, lovey-dovey with the president, maybe they don't want to be targeted by the president. whatever, but who are we to make of this ongoing message of the president now to tell rich guys, you know, get onboard with my wanting to get more from rich guys. >> he always talks about fair share. i don't think that is fair, these guys work hard. men and women, they bridge jobs, and they bring income, they put -- >> that group is not hiring

anyone. >> but they are bringing a lot of times their own money into this risk. >> really? that room? >> they had be able to have the benefits that is capitalism. >> they are using my money and your money, they are not bringing their own money to their bank. neil: i know what you are saying. >> job creators, the business owners what makes 30% fair, why not 40%. neil: he would love to get to 90%. >> right, so. >> the sperm guy would be the least of the worries. here is what i'm worried about the more i hear this talk, and the new taxes coming. not just 600 billion, is that, president needs the power that be to support him on the notion that this is going to help not only our deficits but set us in the right direct, like a coiled

spring ready to go, stick with me, like a lind clinton era thi. >> a big pr move that is not going to happen, saying that rich need to pay their fair share, the rich pay over their fair share. and maybe a flat tax is what we need. neil: that. >> the happening. >> right now it is flip flopped, that is not right for folks who have worked hard and make a lot of money. neil: this particular bunch, is in itsine littl own little sleay category. i will say this, rick, i want to ask you, a lot of rich folks say, all right we have given at the office, you have raised our rates, you zooming out this medicare surtax. now you are closing a lot more loopholes, you demand more money from us. when do you stop saying we're

not paying our fair share. you have to admit that is a legitimate gripe. >> a legitimate issue, but can we all have something that will bring the conversation to a screeching halt, it is not going to happen. i heard segment earlier you were talking about this. tobacco taxes might, are you really disturbed by that. >> of course,. neil: no because they will go after blfs then lts than i woul. >> blt? >> bacon lettuce. >> i don't know what to say about that. >> you are an idiot. neil: i find that everyone future deal there after becomes.

in favor of hikes over cuts. >> only thing that gives me hope, is all headlines i saw in the last day and a half, "forbes" saying this is about soaking the rich. neil: come on this is "forbes," what do you peck tech them to -- do you expect them to say? >> i say there is a common narrative there is class warfare going on, this is not the way to >> i feel sorry for the banking guys who are mean and terrible. >> no, no, no. they are not terrible. but they are mean. >> ask for the dot tax the minute i am not appear spinach you are lucky that you are fit >> thank you very, very much for joining us